tag:blogger.com,1999:blog-3584696203336871201.post904119025347633372..comments2016-07-20T06:26:31.100-07:00Comments on Dividend Growth Investor: Are performance comparisons to S&P 500 necessary for dividend growth investors?Dhttp://www.blogger.com/profile/11197290990687067072noreply@blogger.comBlogger7125tag:blogger.com,1999:blog-3584696203336871201.post-20525338734678627042013-12-05T18:04:24.181-08:002013-12-05T18:04:24.181-08:00It&#39;s funny that you mention MCD in 2012, becau...It&#39;s funny that you mention MCD in 2012, because I&#39;m pretty sure I sold when that price dip happened. I still had a lot to learn back then. Now I have a long position in MCD again, but I&#39;m sure I bought it at a higher price.Kevinhttp://buysmartneversell.com/noreply@blogger.comtag:blogger.com,1999:blog-3584696203336871201.post-37225749144093827172013-06-12T18:25:49.644-07:002013-06-12T18:25:49.644-07:00DGI,
Great article!
I also do not focus on my p...DGI,<br /><br />Great article! <br /><br />I also do not focus on my performance vs. the S&amp;P 500. My success is hinged on my ability to build a growing dividend income stream that will exceed my expenses and then outpace inflation so that my purchasing power increases over time. Outperforming or underperforming the S&amp;P 500 is completely irrelevant to my goal. <br /><br />I think it&#39;s important to put an actionable plan together and set some goals and do what&#39;s necessary to reach those goals. Comparing your performance to others will only allow you to lose focus on what really matters. <br /><br />I liken this to setting a goal out of college to earn $50,000/year and then putting a plan together to get there. Then once you are there you spend your time comparing your $50,000 to everyone else in your field. Feeling like you&#39;re &quot;losing&quot; if you&#39;re making $50k when everyone else is making $52k is really irrelevant as long as $50k pays for all your expenses and allows for more than enough to save and invest.<br /><br />Best wishes!Dividend Mantrahttp://www.dividendmantra.comnoreply@blogger.comtag:blogger.com,1999:blog-3584696203336871201.post-49003248415810211882013-06-11T17:55:12.845-07:002013-06-11T17:55:12.845-07:00Very good article..... buying good dividend stocks...Very good article..... buying good dividend stocks when they are a good value is key to investment success. Then, know when to sell (DGI has a number of articles relating to selling). And then the big one, having the guts to hold through the draw downs. <br /><br />Cheers....... GrantGrantnoreply@blogger.comtag:blogger.com,1999:blog-3584696203336871201.post-46766119727753755762013-06-11T16:00:39.046-07:002013-06-11T16:00:39.046-07:00Rob,
Thanks for stopping by. I honestly find that...Rob,<br /><br />Thanks for stopping by. I honestly find that focusing on companies with growing EPS &amp; DPs trading at cheap prices is what really matters. <br /><br />Anon1,<br /><br />You have a good point, that if I underperform for a long period of time, I would have been better off in index funds. I believe that I would probably match the return of S&amp;P 500, but have lower volatility . This is because a higher portion of my total returns will come from dividends which are growing. I might also outperform because I do not sell 5% -10% of my portfolio holdings each year, like S&amp;P 500.<br /><br />You also have another good point on accumulating your nest egg. I think I have an article scheduled to post in the next few months about the exact same issue you are raising - index funds vs dividend stocks for nest egg accumulation. I think both approaches could work, but both could have pros and cons.<br /><br />Hast2307,<br /><br />I try to be selective with dividend ETFs, because they weigh stocks based on market cap or dividend yield, which in my opinion is not the best way. ETFs are also expensive, and sometimes hold weird stocks in their otherwise &quot;dividend&quot; portfolios.Dividend Growth Investorhttp://www.dividendgrowthinvestor.com/noreply@blogger.comtag:blogger.com,1999:blog-3584696203336871201.post-23829151820723621012013-06-11T12:01:02.126-07:002013-06-11T12:01:02.126-07:00I am wondering, can the same thing be done using j...I am wondering, can the same thing be done using just ETF&#39;s?<br /><br />Thanks<br />Harryhast2307http://www.blogger.com/profile/06622866877620427331noreply@blogger.comtag:blogger.com,1999:blog-3584696203336871201.post-84193183458699155342013-06-11T07:08:16.048-07:002013-06-11T07:08:16.048-07:00Good post on an interesting subject.
The reason t...Good post on an interesting subject.<br /><br />The reason to benchmark your investments to the SP500 (or index of choice) is to see how you would have done if you merely invested in the index.<br /><br />For example, if u find that year after year for 20 years you&#39;ve underperformed the index (including dividends reinvested) wouldn&#39;t you have been better off investing in an index, growing your total assets/capital to a sizable amount, then using that bigger balance to reallocate to dividend companies to create your expense-covering dividend stream?<br /><br />The question I have about DGI is, most build their income streams now as they build their portfolios. What are your thoughts on growing capital in an index fund (assuming it out performs stock selection), hitting a goal (say $500K), then reallocating to dividend-focused stocks to build a portfolio that pays that yield needed to cover expenses?<br /><br /><br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-3584696203336871201.post-23178137608025786942013-06-11T04:25:47.195-07:002013-06-11T04:25:47.195-07:00Excellent article.
I only use the S&amp;P 500 as ...Excellent article.<br /><br />I only use the S&amp;P 500 as a quick glance comparison. When I really want to know how I&#39;m doing I compare our results to Vanguards Total Stock Market VTSAX and to the Vanguard Balanced VBIAX as my whole portfolio includes bonds as well.<br /><br />Between those two is the sweet-spot and if I&#39;m close then good enough.<br /><br />Thank you for your past excellent advice. Always enjoy reading your posts.Robhttp://www.blogger.com/profile/01761061227799480706noreply@blogger.com